Dubai on Wednesday announced the successful completion of the $2.45 billion 17-year financing to complete the construction of Dubai Metro's Route 2020 extension project.
The project will cost AED10.6 billion and will see the construction of a 15km extension of the Dubai Metro's Red Line from Nakheel Harbour and Tower station up to the site of the Expo, with seven stations as well as an upgrade to the existing metro network.
The transaction consists of a 17-year $1.42 billion loan supported by comprehensive guarantees from the French export credit agency, Bpifrance Assurance Export and the Spanish export credit agency CESCE, amortising over 14 years commencing in 2020 and a 10-year conventional facility of $1.1 billion, amortising over six years commencing in 2022.
Abdulrahman Saleh Al Saleh, The Government of Dubai's Department of Finance director general said: "The encouraging response received for this financing, illustrates the strong confidence of international banks in Dubai’s economy and the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
"The Government of Dubai continues to examine ways to optimise it's funding strategy; ECA financing has been a good example of this strategy and we have been able to achieve long term financing at competitive rates while at the same time allowing us to manage our budget proactively and in a fiscally responsible manner."
Banco Santander, First Abu Dhabi Bank, HSBC Middle East, Intesa Sanpaolo and Standard Chartered Bank acted as mandated lead arrangers and the facility providers for the financing.
The contract for the design and build for the Project was awarded by the Roads and Transport Authority (RTA) to a consortium of Alstom Transport, Acciona Infraestructuras and Gulermak.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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